Question 64 Chapter 4 of +2-B
Table of Contents
Profitability Ratio
64. (Operating Ratio) (a) From the following details calculate the operating ratio :
| ₹ | ||
| Cost of goods sold (i.e. Cost of Revenue from Operation) | 5,20,000 | |
| Operating expenses | 1,80,000 | |
| Net sales | 8,00,000 | |
| (b) | Cost of goods sold (i.e. Cost of Revenue from Operation) | 8,00,000 |
| Operating expenses | 40,000 | |
| Sales (Revenue from Operation) | 10,50,000 | |
| Sales return | 50,000 | |
| (c) | Sales less Return | 1,00,000 |
| Gross profit | 40,000 | |
| Administrative expenses | 10,000 | |
| Selling expenses | 10,000 | |
| Income from investments | 5,000 | |
| Loss on the sale of fire | 3,000 |
The solution of Question 64 Chapter 4 of +2-B: –
| (a) Operating Ratio | = | Operating Cost | X | 100 |
| Net Sales | ||||
| = | ₹ 7,00,000 | X | 100 | |
| ₹ 8,00,000 | ||||
| = | 87.5% | |||
| * Operating Cost | = | Cost of goods sold + Operating expenses | ||
| = | ₹ 5,20,000 – ₹ 1,80,000 | |||
| = | ₹ 7,00,000 |
| (b)Operating Ratio | = | ₹ 8,40,000 | X | 100 |
| ₹ 10,00,000 | ||||
| = | 84% |
| *Operating Cost | = | Cost of goods sold + Operating expenses |
| = | ₹ 8,00,000 + ₹ 40,000 | |
| = | ₹ 8,40,000 | |
| *Net Sales | = | Sales – Sales Return |
| = | ₹ 10,50,000 – ₹ 50,000 | |
| = | ₹ 10,00,000 | |
| (c)Operating Ratio | = | ₹ 80,000 | X | 100 |
| ₹ 1,00,000 | ||||
| = | 80% |
| Cost of goods sold | = | Sales – Gross Profit |
| = | ₹ 1,00,000 + ₹ 40,000 | |
| = | ₹ 60,000 | |
| Operating Cost | = | Cost of goods sold + Administrative expenses + Selling expenses |
| = | ₹ 60,000 + ₹ 10,000 + ₹ 10,000 | |
| = | ₹ 80,000 |
Also, Check out the solved question of previous Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
